As required by law, all companies and close corporations are obligated to lodge their returns with the Companies and Intellectual Property Commission (“CIPC”) on an annual basis. The purpose for attending to the lodgment is to confirm whether a registered business is still trading. Should annual returns not be lodged, the notion is that the business is inactive and CIPC may accordingly commence with the deregistration process.

Deregistration

If returns remain unsettled for two successive years, CIPC may refer a company or close corporation for deregistration.

Cancellation of deregistration

If all outstanding annual returns are lodged deregistration can be cancelled. However, should the cause for deregistration be for any another reason, a written objection must be lodged with CIPC.
Important: Should a company or close corporation have the status of “final deregistration”, no return lodgment or written objection can be processed at CIPC and the process of re-instatement is to be followed.

Re-instatement

As soon as this process is followed and initiated, the status of the close corporation or company will change to “deregistration process”.

For further legal advice on company secretarial matters please do not hesitate to contact us.

Written by Claire Vogelpath-de Iongh, BKM Attorneys
claire@bkm.co.za

Please do not hesitate to contact us on +27 11 788-0083 should you have any further enquiries or email enquiries@bkm.co.za